Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
Free Webinar - Decode the market's secrets! | Tuesday, May 30, 2023 | 01:00PM EDT Enroll Now
Gilead Sciences shares gain after topping expectations despite lower remdesivir sales
Published Feb 03, 2023 09:46AM ET
Updated Feb 03, 2023 09:53AM ET
© Reuters Gilead Sciences shares gain after topping expectations despite lower remdesivir sales
By Sam Boughedda
Gilead Sciences (NASDAQ:GILD) shares rallied in early Friday trading in reaction to the company's latest earnings report, which saw it beat top and bottom-line consensus expectations.
The biopharmaceutical company posted fourth-quarter earnings of $1.67 per share, $0.17 above the analyst consensus estimate of $1.50, while revenue for the quarter came in at $7.4 billion, beating expectations of $6.66B.
The company's revenue increased year-over-year, primarily due to increased sales in Oncology, HIV, and hepatitis C virus. However, this was partially offset by lower Veklury (remdesivir) sales, which decreased 26% to $1B in the quarter, driven mainly by lower rates of COVID-19-related hospitalizations.
Even so, Gilead said 2022 marked the strongest full-year growth in its base business since hepatitis C virus sales peaked in 2015. The company stated that the return to growth was driven by "consistent and high-quality commercial and clinical execution across our portfolio."
At the time of writing, Gilead shares are up more than 5%.
Looking forward, Gilead Sciences sees FY2023 earnings of $6.60 to $7 per share, versus the consensus of $6.73, while revenue is seen between $26B and $26.5B, versus the consensus of $27B.
Reacting to the report, Wells Fargo analysts, who have an Equal Weight rating and $90 price target on the stock, said Gilead's good guidance sets up its base business well, but it is lacking major catalysts.
"GILD posted a robust 2023 guide that continues to suggest better business fundamentals, but at these levels we think the stock requires some major pipeline catalyst for multiple expansion at this point," wrote analysts.
Jefferies analysts felt differently, however, maintaining a Buy rating and $100 per share price target on the stock, stating there are a few catalysts this year.
"Gilead remains a solid value play at ~12x PE, ~3.5% yield, beating quarters w/good guidance, and defensive in this environment," wrote analysts. "Expectations remain low, and upside from Trop2 lung cancer, TIGIT lung cancer, and class action lawsuit developments, are all pot'l (+) events this year. Guidance looks conservative (higher Veklury guidance vs cons leaves cushion for BD deals or dropping to higher EPS)."
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.